Serba Dinamik takes legal action against Bursa Malaysia

KUALA LUMPUR: Serba Dinamik Holdings Bhd (SDHB) filed an originating summons (OS) at the Kuala Lumpur High Court against Bursa Malaysia on Nov 3 in which it said the stock exchange regulator acted in “excess of power” with regard to directives given to the company concerning the requirement to conduct a special independent review and to disclose the findings of the review.

In a filing with the local bourse on Monday (Nov 8), SDHB said it is seeking a declaration that the instruction given by the exchange “to appoint Ernst & Young Consulting Sdn Bhd (EY) to conduct a special independent review (SIR) made pursuant to paragraphs 2.23 and 2.24 of the Main Market Listing Requirements (MMLR) is in excess of power, null and void and of no effect.”

It also seeking a declaration that the instruction given by Bursa to SDHB dated Oct 22 to announce a “Factual Findings Update” made by EY is “in excess of power, null and void and of no effect” as well as a declaration that Bursa had failed to comply with paragraph 2.24 of the MMLR.

SDHB contends that Bursa cannot exercise its power “purportedly pursuant to paragraphs 2.23 and 2.24 of MMLR, to direct it to appoint EY as a special auditor to conduct the SIR.”

SDHB is also seeking interim injunctive relief against Bursa pending the full and final disposal of the OS to restrain Bursa from making any announcement or otherwise publish, distribute or make available to anyone the “Factual Findings Update” prepared by EY.

In addition, SDHB is also seeking damages against Bursa.

The company said it will make further announcements “as and when there are material developments on the above matter.”

The application for interim injunctive relief is fixed for hearing this Thursday (Nov 11) while the case management for the OS has been fixed for next Wednesday (Nov 17).

Meanwhile, Bursa Securities Bhd said in a statement later in the evening that it has engaged a legal counsel to advise on the next course of action regarding the legal action taken against it by SDHB.

Bursa Securities said it will be “defending its position vigorously and will not abdicate its statutory roles and functions in the marketplace.”

It said as a frontline regulator of the capital market, Bursa Securities is entitled to exercise its power pursuant to the listing requirements in the interest of maintaining an orderly and fair market.

“Timely disclosure of material information is a key pillar of ensuring the market is well informed of the information and all investors are treated equally and able to trade on equal footing in terms of parity of disclosures. This is paramount to enable Bursa Securities to discharge its statutory duty,” it said. – Bernama